Controlled vs uncontrolled — who owns the value?

What does this output?

// Controlled: parent owns value, child just displays
function ControlledInput(value, onChange) {
  // The value comes from outside — child can't change it directly
  return {
    value,
    type: 'controlled',
    handleChange(newVal) {
      onChange(newVal); // notify parent — parent decides if value changes
    }
  };
}

// Uncontrolled: component owns value internally
function UncontrolledInput(defaultValue) {
  let internalValue = defaultValue;
  return {
    value: internalValue,
    type: 'uncontrolled',
    handleChange(newVal) {
      internalValue = newVal; // self-managed, no parent needed
    }
  };
}

let parentValue = 'hello';
const controlled = ControlledInput(parentValue, v => { parentValue = v; });
const uncontrolled = UncontrolledInput('world');

controlled.handleChange('new');
uncontrolled.handleChange('updated');

console.log(parentValue);
console.log(uncontrolled.value);
console.log(controlled.type);

Correct Output

new
world
controlled

Why this output?